There will be a meeting between Chief EU negotiator Michel Barnier and Brexit Secretary David Davis in London on Monday. "Without a Customs Union and outside the Single Market, barriers to trade and goods and services are unavoidable", he said.

Speaking in Downing Street following meetings with Theresa May and Brexit secretary David Davis, Mr Barnier said he was still waiting for clarity on what relationship Britain wanted from the European Union after it leaves.

"The conditions are clear, very clear", he continued.

Later, Downing Street has moved to reassure Tory Brexiteers that Theresa May is committed to taking Britain out of the EU customs union. "And to achieve this, we need by the end of March a joint commitment by the political authorities to a well-defined implementation or transition period which will create the space and support for the regulators to work with firms and political authorities to put practical solutions into place", Bailey said.

What this means is that Britain will now be able to strike trade deals around the world, something which a Customs Union could have prevented.

"Because I read for example, "we don't want a soft Brexit", I read "we don't want a hard Brexit", I read "we don't want a customs union", I read "we don't want to contribute to the EU budget in the future". Speaking on Marr, Amber Rudd said she was "not intimidated" by Brexiteers" warnings over the customs union.

The two men will begin talks on the post-Brexit transitional arrangements.

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His visit to London came as Number 10 ruled out remaining in a customs union with the EU after Brexit.

The "streamlined arrangement" would see it quit the customs union, while using high-tech gadgets to speed up the resulting new customs formalities. However, this was later dismissed by the Justice minister Dominic Raab, who told Sky News that: "I don't think we'll be in any form of customs union, at least as conceived in worldwide trade practice".

Prior to Barnier's arrival, a Downing Street spokesperson insisted the United Kingdom would categorically be leaving the customs union after reports suggested that May has softened her talks with infighting among her party and her cabinet on the way forward in these Brexit talks.

Bailey said British banking authorities ought to sign bilateral "memorandums" with those in other European Union financial centres, such as Berlin, Frankfurt, and Paris, to work together no matter what happens in the Brexit process.

Theresa May says Britain is leaving the customs union - so what will replace it?

May insisted Friday she was "doing what the British people want" and going nowhere despite pressure on her to resign. "The majority of Conservative MPs and Conservative voters would back her".

Indeed, during Theresa May's speech of 17th January 2017 when she set out Britain's negotiating positions (the so-called "12 points"), it was stated that "I do want us to have a customs agreement with the EU".

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